Global Employers Lack Readiness for Rising Pay Transparency Regulations According to Aon Study

Majority of Global Employers Lack Readiness for Pay Transparency Laws

Aon plc, a major player in professional services globally, has recently published findings from its 2025 Global Pay Transparency Study, revealing significant challenges organizations face concerning pay transparency. The study surveyed over 1,400 organizations across more than 40 countries, and the results are indicative of a substantial readiness gap in the face of rising regulatory expectations and evolving employee demands regarding pay equity and transparency.

According to the data, only 19% of businesses globally feel adequately prepared to implement necessary pay transparency measures. While some improvements are visible in North America, where the percentage of firms declaring “not ready” has decreased to 16%, there are stark contrasts in preparedness among different regions. In APAC, for instance, a whopping 48% of organizations reported being unprepared, followed by 40% in LATAM and 26% in EMEA.

Lisa Stevens, Chief Administrative Officer at Aon, emphasizes the growing necessity for transparency, observing that it has shifted from being a mere buzzword to a baseline expectation among employees, coupled with crucial legal obligations in more jurisdictions. Stevens warns that the lack of proactive measures can adversely affect an organization’s ability to attract, retain, and effectively engage talent, alongside the risk of falling out of compliance with emerging regulations.

Compliance Takes Precedence Over Culture

The findings highlight a troubling trend: many companies are approaching compliance reactively, rather than integrating transparency as a foundational component of their corporate values. Approximately 60% of respondents only apply pay transparency measures selectively based on geographical regulations, rather than establishing a cohesive, organization-wide transparency strategy. This indicates a focus on compliance rather than fostering a culture of openness and fairness.

Moreover, while pay transparency regulations are widely acknowledged as critical for promoting pay equity, a surprising 26% of surveyed organizations have conducted a pay equity analysis in the past year and a half. This reveals a concerning trend where organizations continue prioritizing regulatory compliance over comprehensive equity-focused strategies.

Communicating pay policies effectively also poses a significant challenge. Only 7% of organizations believe their employees fully grasp the pay policies in place, and a mere 9% have high confidence that their managers are adequately trained to talk about compensation, laying bare a major barrier to achieving transparency. On a related note, despite 69% of organizations publishing salary bands during recruitment, only 21% extend this practice to all job postings, underscoring a cautious, compliance-driven mindset.

According to Kelly Voss, head of rewards and career advisory for North America at Aon, transparent communication and solid manager training are vital to fostering true pay transparency. Without such foundational elements, even well-meaning strategies may fall short, leading to greater employee discontent amid economic instability and lingering concerns over fairness.

Signs of Positive Change

Despite these challenges, the study does highlight encouraging signs of progress. An impressive 71% of organizations indicate that their readiness for pay transparency has improved within the past year. With the EU Pay Transparency Directive set to come into effect in 2026, along with other burgeoning global regulations, Aon urges employers to shift from a mere compliance mindset to one focused on strategic action. Voss notes that treating pay transparency as a critical business goal rather than just a legal requirement will enable organizations to develop engaged and resilient workforces.

In summary, the findings from Aon’s 2025 Global Pay Transparency Study illustrate the urgent need for organizations to advance their pay transparency practices. The evolution from reactive compliance to a strategic commitment to equity and transparency is essential for attracting and retaining top talent in an increasingly competitive job market. The full report offers a deeper exploration of this pressing issue, with further insights available on Aon's website.